Oil prices decline as Opec prepares to increase output

Oil prices dipped under the US$90 a barrel mark today as traders reacted to signs that Opec will increase output next week.

Light, sweet crude for January delivery fell as low as $88.52 on the New York Mercantile Exchange, compared with $99 earlier this month.

Oil prices have tumbled this week amid speculation that supplies are rising and a slowdown in US growth will undercut energy demand.

Meanwhile several ministers of the Organisation of Petroleum Exporting Countries (Opec) have said in recent days that the group is ready to boost output to bring prices down.

An Opec meeting in Abu Dhabi is due to be held on Wednesday.

Oil prices are likely to remain volatile, as highlighted on Thursday when a fire on a pipeline between Canada and the Midwest caused a spike above $95.

The figure later fell back when it became apparent the section would be back up in days.